1. On June 30, 2019, when PKM Inc. were selling for $ 65 each, equity accounts had the following balances:

Common Stock (par value $ 50; 50,000 shares issued) $ 2,500,000

Contributed Capital in Excess of Even Value 600,000

Retained Earnings 4,200,000

If a 100% stock dividend is declared and distributed, the balance of the Common Stock account will be a. $ 2,500,000 b. $ 3,100,000

c. $ 7,300,000 d. 5,000,000

2. STW Company at the beginning of 2018 (during the year these amounts did not change):

Preferred shares (par value $ 10, 6%):$800,000

Common shares: $3,200,000

No dividends were declared for the years 2018 and 2019. However, in 2020, STW declared a total dividend (for both types of shares) of $ 300,000. Determine the amount preferred shareholders will receive if the share is cumulative and nonparticipating. a. $ 48,000 b. $ 96,000 c. $ 150,000 d. $ 144,000